Not sure this is all that typical. While repair costs can get to a fairly large percentage of the purchase price and thus not making sense in some situations, it's not always the case.
I recently repaired a Sony soundbar system for about 30% of the purchase price, so definitely not "at the cost of replacement". Replaced a phone screen for 10% the cost of a new one etc.
Today, I'm returning a leased car. I had a small crack in the front bumper (trailer hitch in a parking lot). It isn't one of the new sensor-packed bumpers; just a vanilla one.
It cost $1,000 to repair, because they replaced the entire front bumper, and the paint cost more than the part.
It also had to be done at the dealer, because of the lease requirements. The body shop down the road would have done it for half that. I have since found out that the dealer sends the car to a body shop anyway, and they probably only charged half, so the dealer pocketed the difference.
I am never leasing a vehicle, ever again. This was my first, and last time.
Which brand did you lease? I've leased Toyota's before and had no such restriction. I could go to any auto body shop they just had to use genuine Toyota parts for the repair. With my last lease I had to have the rear bumper replaced Toyota didn't care where I got it done.
I recently repaired a Sony soundbar system for about 30% of the purchase price, so definitely not "at the cost of replacement". Replaced a phone screen for 10% the cost of a new one etc.